Form 8-K CALLIDUS SOFTWARE INC For: Nov 05
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 5, 2015
(Date of earliest event reported)
Callidus Software Inc.
(Exact name of Registrant as specified in its charter)
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Delaware
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000-50463
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77-0438629
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(State or other jurisdiction
of incorporation)
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(Commission
file number)
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(I.R.S. Employer
Identification No.)
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4140 Dublin Boulevard, Suite 400, Dublin, California 94568
(Address of principal executive offices) (Zip Code)
(925) 251-2200
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition
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On November 5, 2015 Callidus Software Inc. announced financial results for the quarter ended September 30, 2015.
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits
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The following exhibit is furnished herewith:
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Exhibit
Number
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Description
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Press Release of Callidus Software Inc. dated November 5, 2015
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CALLIDUS SOFTWARE INC.
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Date: November 5, 2015
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By:
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/s/ Bob L. Corey
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Bob L. Corey
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Executive Vice President, Chief Financial Officer
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EXHIBIT INDEX
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Exhibit
Number
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Description
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Press Release of Callidus Software Inc. dated November 5, 2015
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Exhibit 99.1
CallidusCloud Announces Third Quarter 2015 Results
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-
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Q3 SaaS Revenue of $30.2 Million, a 40% Year-over-Year Increase
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-
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Record Q3 Revenue of $44.3 Million, a 27% Year-over-Year Increase
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-
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Year to Date Operating Cash Flow, a 103% Year-over-Year Increase
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-
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Raises 2015 Revenue Guidance – $171.0 Million to $172.0 Million
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-
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Issues 2016 Revenue Guidance – $207.0 Million to $212.0 Million
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*All revenue numbers EXCLUDE the BridgeFront acquisition
DUBLIN, CA, November 5, 2015— Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the third quarter ended September 30, 2015.
“Q3 was another great quarter. We had record total revenue and record SaaS revenue growth of 40% and we expanded our gross margin while we continued to make money,” said Leslie Stretch, president and CEO of CallidusCloud. “Our Lead to Money suite delivers unique competitive value to our customers and our ability to execute is better than ever. As a result, we are raising our full year guidance and expect continued momentum throughout 2016.”
Financial Highlights for the Third Quarter 2015
Total reported revenue was $44.9 million for the third quarter, an increase of 28% and includes $600 thousand of revenue from the Bridgefront acquisition. Total recurring revenue was $34.3 million, which includes SaaS revenue of $30.8 million and maintenance revenue of $3.5 million. SaaS revenue increased 43% over the same quarter in the prior year, benefiting from the continued success in our Lead to Money suite and $600 thousand of revenue from Bridgefront. Excluding the Bridgefront revenue, SaaS revenue increased 40% over the same quarter last year. Services and license revenue was $10.6 million, consisting of $10.2 million in services revenue, a 21% increase over prior year, and $400 thousand in license revenue, a decrease of approximately $600 thousand from the prior year. Cash and short-term investments were $95.7 million and cash flow from operations was $9.9 million in the quarter. Cash flow from operations year-to-date was $20.5 million through September 30, 2015, reflecting a 103% increase over last year.
GAAP Performance
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·
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Recurring revenue gross margin was 74%, compared to 65% for the same quarter in the prior year.
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·
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Overall gross margin was 61%, compared to 55% for the same quarter in the prior year.
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·
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Operating loss was $2.0 million compared to $4.9 million for the same quarter in the prior year.
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·
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Net loss was $2.2 million, or ($0.04) on a per share basis, compared to net loss of $5.2 million, or ($0.11) on a per share basis for the same quarter in the prior year.
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·
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Cash from operations was $9.9 million in the current quarter compared to $3.7 million for the same quarter in the prior year.
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Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.
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·
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Recurring revenue gross margin was 77%, compared to 73% for the same quarter in the prior year.
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·
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Overall gross margin was 64%, compared to 62%, for the same quarter in the prior year.
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·
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Operating income was $3.5 million, compared to $2.8 million for the same quarter in the prior year.
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·
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Net income was $3.2 million, or $0.06 per fully diluted share, compared to $2.5 million, or $0.05 per fully diluted share, for the same quarter in the prior year.
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Business Highlights for the Third Quarter 2015
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·
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In August the leading insurers in North America gathered in Chicago for an exclusive summit addressing the key challenges ahead for the insurance industry and how CallidusCloud’s new solutions including Producer Pro will deliver faster time to market, faster time to coverage and the very best agent experience for insurance sales. The exclusive event brought together senior management from the top insurers in North America.
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·
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CallidusCloud was honored with 6 gold ‘Stevie’ awards at the International Business Awards in August including the prestigious ‘Grand Stevie’ award reserved only for the most successful companies. The company picked up 22 awards in total including best new cloud application for the Lead to Money suite, best lead generation solution and most innovative company of the year.
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·
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CallidusCloud and ServiceMax announced a partnership that will enable service personnel to configure price and quote proposals, while in front of customers to accelerate sales. ServiceMax leads the $18 billion global market for field software and this partnership enables ServiceMax-equipped field technicians to capitalize on revenue opportunities with CallidusCloud’s CPQ solution.
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·
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CallidusCloud announced a partnership with Seal Software to enable customers to unlock hidden value from contracts. The partnership will enable companies to transform contracts into powerful searchable and actionable sources of information to uncover revenue opportunities, highlight risks and ensure compliance. Seal Software is the leading provider of contract discovery and extraction software.
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·
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CallidusCloud was a sponsor at Salesforce.com’s annual Dreamforce customer conference in San Francisco in September. At the conference CallidusCloud partnered with Appirio and DocuSign to host exclusive VIP customer lounges in prime branding locations and events that were oversubscribed.
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Financial Outlook for 2015 – Fourth Quarter and Full Year
For the fourth quarter of 2015, including $750 thousand of revenue from BridgeFront, the Company expects total revenue to be between $46.0 million and $47.0 million. GAAP operating loss is expected to be between $1.5 million and $3.5 million, with GAAP net loss per share between $0.03 and $0.07. Non-GAAP operating income is expected to be between $4.1 million and $5.6 million, with non-GAAP income per diluted share between $0.06 and $0.09.
For the full year of 2015, including $1.3 million of revenue from BridgeFront, the Company is increasing previous revenue guidance to the range of $172.3 million to $173.3 million. We are projecting full-year SaaS revenue growth to be 37%, including $1.3 million from BridgeFront. GAAP operating loss is expected to be between $11.4 million and $13.4 million, with GAAP net loss per share between $0.23 and $0.27. Non-GAAP operating income is expected to be between $12.0 million and $13.5 million, with non-GAAP income per diluted share between $0.18 and $0.21.
Preliminary Outlook for 2016
For the full year of 2016, the Company expects total revenue to be between $210.0 and $215.0 million, including $750 thousand per quarter, or $3.0 million for the full year from BridgeFront. Additionally we are projecting SaaS revenue growth for the year of 30% plus.
Conference Call
In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Standard Time (PST) today to discuss the third quarter and outlook for the fourth quarter 2015 and full year 2015. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud’s website.
Webcast site: http://www.calliduscloud.com/about-us/investor-relations
Dial-in: 877-546-5019 (International callers: 857-244-7551)
Passcode: 88582591
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.
For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/
About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing and learning solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation – driving bigger deals, faster. Over 4,400 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.
For more information, please visit www.calliduscloud.com.
Non-GAAP Financial Measures
In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud’s operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud’s industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Our non-GAAP measures reflect adjustments based on the following items:
Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.
Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income, net income and net income per diluted share. Restructuring and other expense consists of employee severance, facility exit costs and incremental depreciation expense as a result of the change in the estimated useful life of assets abandoned. We feel it is useful to investors to understand the effects of these items on our financial results.
Patent litigation and settlement costs and patent litigation estimates: We have excluded the effect of patent infringement and litigation defense costs, settlement costs and patent litigation estimates from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe patent litigation costs and settlement costs and patent litigation estimates are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.
Convertible note interest expense, conversion costs and amortization of convertible note issuance costs: We have excluded the costs of convertible note interest expense, redemption inducement and issuance costs from our non-GAAP net income and net income per diluted share. We believe that these costs are not indicative of our continuing operations or meaningful in evaluating current versus past business results.
Amortization and gain on sale of acquired intangible assets: We have excluded the effect of amortization and gain on sale of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, net income and net income per diluted share. Amortization and gain on sale of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.
Acquisition-Related Costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income per diluted share. These costs include legal and transactional costs associated with acquisition activities that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including for example discussion of our commercial prospects, estimates of future revenues, operating income/loss and expenses, earnings per share, stock-based compensation expenses, amortization of acquired intangible assets, restructuring expenses, and patent litigation costs and estimates reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K which may be obtained by contacting CallidusCloud’s Investor Relations department at 415-445-3238, or from the Investor Relations section of CallidusCloud’s website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
©2015. Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, TrueComp Manager, ActekSoft, ACom3, iCentera, Webcom, Litmos, the Litmos logo, LeadFormix, Rapid Intake, 6FigureJobs, Clicktools, Surve, LeadRocket and BridgeFront are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
Investor Relations Contact
Ed Keaney
Market Street Partners
(415) 445-3238
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CALLIDUS SOFTWARE INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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(In thousands, except per share data)
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||||||||||||||||
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Three Months Ended
September 30, |
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||
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2015
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2014
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2015
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2014
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Revenue:
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Recurring
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$ | 34,301 | $ | 25,547 | $ | 93,907 | $ | 71,481 | ||||||||
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Services and license
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10,643 | 9,453 | 32,396 | 27,011 | ||||||||||||
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Total revenue
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44,944 | 35,000 | 126,303 | 98,492 | ||||||||||||
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Cost of revenue:
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Recurring
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9,034 | 8,916 | 25,233 | 23,706 | ||||||||||||
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Services and license
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8,318 | 6,730 | 24,041 | 17,468 | ||||||||||||
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Total cost of revenue
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17,352 | 15,646 | 49,274 | 41,174 | ||||||||||||
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Gross profit
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27,592 | 19,354 | 77,029 | 57,318 | ||||||||||||
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Operating expenses:
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Sales and marketing
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14,855 | 11,153 | 43,377 | 33,688 | ||||||||||||
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Research and development
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6,846 | 4,920 | 18,886 | 14,838 | ||||||||||||
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General and administrative
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7,883 | 7,892 | 24,413 | 18,113 | ||||||||||||
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Restructuring and other
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— | 305 | 234 | 709 | ||||||||||||
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Total operating expenses
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29,584 | 24,270 | 86,910 | 67,348 | ||||||||||||
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Operating loss
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(1,992 | ) | (4,916 | ) | (9,881 | ) | (10,030 | ) | ||||||||
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Interest income and other income (expense), net
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(38 | ) | (20 | ) | (414 | ) | 3,948 | |||||||||
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Interest expense
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(26 | ) | (38 | ) | (149 | ) | (429 | ) | ||||||||
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Loss before provision for income taxes
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(2,056 | ) | (4,974 | ) | (10,444 | ) | (6,511 | ) | ||||||||
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Provision for income taxes
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187 | 261 | 566 | 941 | ||||||||||||
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Net loss
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$ | (2,243 | ) | $ | (5,235 | ) | $ | (11,010 | ) | $ | (7,452 | ) | ||||
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Net loss per share
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Basic and Diluted
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$ | (0.04 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.16 | ) | ||||
| Weighted average shares used in computing net loss per share: | ||||||||||||||||
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Basic and Diluted
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56,104 | 48,564 | 54,156 | 47,061 | ||||||||||||
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CALLIDUS SOFTWARE INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(unaudited)
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(In thousands)
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September 30,
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December 31,
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2015
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2014
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 77,117 | $ | 34,200 | ||||
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Short-term investments
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18,597 | 2,766 | ||||||
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Accounts receivable, net
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37,945 | 41,623 | ||||||
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Prepaid and other current assets
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9,995 | 10,384 | ||||||
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Total current assets
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143,654 | 88,973 | ||||||
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Property and equipment, net
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20,226 | 18,755 | ||||||
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Goodwill
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50,414 | 46,970 | ||||||
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Intangible assets, net
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16,318 | 17,757 | ||||||
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Deferred income taxes, noncurrent
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399 | 440 | ||||||
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Deposits and noncurrent assets
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3,299 | 3,403 | ||||||
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Total assets
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$ | 234,310 | $ | 176,298 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities:
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Accounts payable
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$ | 2,569 | $ | 2,056 | ||||
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Accrued payroll and related expenses
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9,065 | 9,051 | ||||||
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Accrued expenses
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12,110 | 16,868 | ||||||
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Deferred income taxes
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1,475 | 1,475 | ||||||
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Deferred revenue
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71,010 | 61,427 | ||||||
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Capital lease obligations
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223 | 1,001 | ||||||
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Total current liabilities
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96,452 | 91,878 | ||||||
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Deferred revenue, noncurrent
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6,260 | 10,195 | ||||||
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Deferred income taxes, noncurrent
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46 | 561 | ||||||
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Revolving line of credit
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- | 10,481 | ||||||
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Other noncurrent liabilities
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4,700 | 4,709 | ||||||
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Total liabilities
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107,458 | 117,824 | ||||||
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Stockholders’ equity:
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Common stock
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56 | 49 | ||||||
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Additional paid-in capital
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424,224 | 344,312 | ||||||
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Treasury stock
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(14,430 | ) | (14,430 | ) | ||||
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Accumulated other comprehensive loss
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(1,270 | ) | (739 | ) | ||||
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Accumulated deficit
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(281,728 | ) | (270,718 | ) | ||||
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Total stockholders’ equity
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126,852 | 58,474 | ||||||
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Total liabilities and stockholders’ equity
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$ | 234,310 | $ | 176,298 | ||||
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CALLIDUS SOFTWARE INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(unaudited)
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(In thousands)
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Nine Months Ended September 30,
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2015
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2014
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Cash flows from operating activities:
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Net loss
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$ | (11,010 | ) | $ | (7,452 | ) | ||
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Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||
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Depreciation expense
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4,501 | 3,953 | ||||||
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Amortization of intangible assets
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3,985 | 3,667 | ||||||
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Gain on sale of intangible assets
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- | (3,862 | ) | |||||
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Provision for doubtful accounts
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1,097 | 729 | ||||||
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Stock-based compensation
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13,924 | 7,916 | ||||||
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Deferred income taxes
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(381 | ) | (133 | ) | ||||
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Release of valuation allowance
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- | (149 | ) | |||||
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Excess tax benefits from stock-based compensation
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(29 | ) | - | |||||
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Loss on disposal of property and equipment
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10 | 44 | ||||||
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Amortization of convertible notes issuance cost
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- | 58 | ||||||
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Net amortization on investments
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78 | 21 | ||||||
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Changes in operating assets and liabilities:
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Accounts receivable
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3,373 | (2,359 | ) | |||||
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Prepaid and other current assets
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487 | (1,997 | ) | |||||
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Other noncurrent assets
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104 | (197 | ) | |||||
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Accounts payable
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3 | 583 | ||||||
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Accrued expenses
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17 | 5,471 | ||||||
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Accrued payroll and related expenses
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14 | (627 | ) | |||||
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Accrued restructuring and other expenses
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(99 | ) | (98 | ) | ||||
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Deferred revenue
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4,448 | 4,548 | ||||||
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Net cash provided by operating activities
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20,522 | 10,116 | ||||||
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Cash flows from investing activities:
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||||||||
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Purchases of investments
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(19,444 | ) | (2,784 | ) | ||||
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Proceeds from maturities and sale of investments
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3,554 | 7,850 | ||||||
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Purchases of property and equipment
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(9,548 | ) | (5,135 | ) | ||||
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Purchases of intangible assets
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(524 | ) | (882 | ) | ||||
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Purchases from sale of intangible assets, net of expense
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- | 4,651 | ||||||
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Acquisitions, net of cash acquired
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(4,365 | ) | (15,409 | ) | ||||
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Net cash used in investing activities
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(30,327 | ) | (11,709 | ) | ||||
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Cash flows from financing activities:
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||||||||
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Proceeds from follow-on offering, net of issuance costs
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64,372 | - | ||||||
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Proceeds from issuance of common stock
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4,236 | 4,003 | ||||||
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Restricted stock units acquired to settle employee withholding liability
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(2,656 | ) | (1,553 | ) | ||||
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Excess tax benefits from stock-based compensation
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29 | - | ||||||
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Proceeds (repayment) from/to line of credit
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(10,482 | ) | 10,482 | |||||
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Payment of consideration related to acquisitions
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(1,802 | ) | (630 | ) | ||||
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Repayment of debt
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- | (645 | ) | |||||
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Payment of principal under capital leases
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(778 | ) | (744 | ) | ||||
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Net cash provided by financing activities
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52,919 | 10,913 | ||||||
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Effect of exchange rates on cash and cash equivalents
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(197 | ) | (169 | ) | ||||
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Net increase in cash and cash equivalents
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42,917 | 9,151 | ||||||
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Cash and cash equivalents at beginning of period
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34,200 | 28,295 | ||||||
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Cash and cash equivalents at end of period
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$ | 77,117 | $ | 37,446 | ||||
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CALLIDUS SOFTWARE INC.
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GAAP TO NON-GAAP ADJUSTMENT SUMMARY
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(In thousands)
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(unaudited)
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GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs and estimates, interest expense on convertible notes, amortization of convertible
note issuance costs, debt conversion expense, restrucuring and other expenses, acquisition-related costs and gain on sale of domain names and trademarks as follows: |
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Three Months Ended
September 30, |
Nine Months Ended
September 30, |
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2015
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2014
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2015
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2014
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Cost of revenues:
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Recurring
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$ | 984 | $ | 2,012 | $ | 2,789 | $ | 3,510 | ||||||||
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Services and license
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287 | 275 | 886 | 771 | ||||||||||||
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Operating expenses:
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Sales and marketing
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1,657 | 1,185 | 4,926 | 3,068 | ||||||||||||
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Research and development
|
745 | 481 | 2,192 | 1,393 | ||||||||||||
|
General and administrative
|
1,533 | 3,470 | 6,517 | 6,325 | ||||||||||||
|
Restructuring and other
|
244 | 305 | 478 | 709 | ||||||||||||
|
Interest income and other income (expense)
|
- | 19 | - | (3,508 | ) | |||||||||||
|
Total
|
$ | 5,450 | $ | 7,747 | $ | 17,788 | $ | 12,268 | ||||||||
|
CALLIDUS SOFTWARE INC.
|
|||||||||||||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||
|
(In thousands, except for percentages and per share data)
|
|||||||||||||||||
|
(unaudited)
|
|||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||||
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||
|
Non-GAAP gross profit reconciliation
|
|||||||||||||||||
|
Gross profit
|
$ | 27,592 | $ | 19,354 | $ | 77,029 | $ | 57,318 | |||||||||
|
Gross margin
|
61 | % | 55 | % | 61 | % | 58 | % | |||||||||
|
Add back:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
546 | 491 | 1,661 | 1,335 | |||||||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
725 | 606 | 2,015 | 1,756 | |||||||||||||
|
Patent litigation estimate
|
- | 1,190 | - | 1,190 | |||||||||||||
|
Non-GAAP gross profit
|
$ | 28,863 | $ | 21,641 | $ | 80,705 | $ | 61,599 | |||||||||
|
Gross margin
|
64 | % | 62 | % | 64 | % | 63 | % | |||||||||
|
Non-GAAP recurring revenue gross profit reconciliation
|
|||||||||||||||||
|
Recurring revenue gross profit
|
$ | 25,267 | $ | 16,631 | $ | 68,674 | $ | 47,775 | |||||||||
|
Recurring revenue gross margin
|
74 | % | 65 | % | 73 | % | 67 | % | |||||||||
|
Add back:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
269 | 226 | 806 | 600 | |||||||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
715 | 596 | 1,984 | 1,720 | |||||||||||||
|
Patent litigation estimate
|
- | 1,190 | - | 1,190 | |||||||||||||
|
Non-GAAP recurring revenue gross profit
|
$ | 26,251 | $ | 18,643 | $ | 71,464 | $ | 51,285 | |||||||||
|
Recurring revenue gross margin
|
77 | % | 73 | % | 76 | % | 72 | % | |||||||||
|
Non-GAAP operating expense reconciliation:
|
|||||||||||||||||
|
Operating expenses
|
$ | 29,584 | $ | 24,270 | $ | 86,910 | $ | 67,348 | |||||||||
|
Operating expenses, as a % of total
|
|||||||||||||||||
|
revenues
|
66 | % | 69 | % | 69 | % | 68 | % | |||||||||
|
Subtract:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
(3,469 | ) | (2,501 | ) | (12,262 | ) | (6,581 | ) | |||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
(437 | ) | (317 | ) | (1,278 | ) | (953 | ) | |||||||||
|
Patent litigation and settlement costs
|
(29 | ) | (238 | ) | (94 | ) | (1,172 | ) | |||||||||
|
Acquisition-related costs
|
(244 | ) | (259 | ) | (244 | ) | (259 | ) | |||||||||
|
Restructuring and other
|
- | (305 | ) | (234 | ) | (709 | ) | ||||||||||
|
Patent litigation estimate
|
- | (1,821 | ) | - | (1,821 | ) | |||||||||||
|
Non-GAAP operating expenses
|
$ | 25,405 | $ | 18,829 | $ | 72,798 | $ | 55,853 | |||||||||
|
Non-GAAP Operating expenses, as a %
|
|||||||||||||||||
|
of total revenues
|
57 | % | 54 | % | 58 | % | 57 | % | |||||||||
|
CALLIDUS SOFTWARE INC.
|
|||||||||||||||||
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||
|
(In thousands, except for percentages and per share data)
|
|||||||||||||||||
|
(unaudited)
|
|||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||||
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||
|
Non-GAAP operating income (loss) reconciliation:
|
|||||||||||||||||
|
Operating loss
|
$ | (1,992 | ) | $ | (4,916 | ) | $ | (9,881 | ) | $ | (10,030 | ) | |||||
|
Operating loss, as a % of total
|
|||||||||||||||||
|
revenues
|
-4 | % | -14 | % | -8 | % | -10 | % | |||||||||
|
Add back:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
4,015 | 2,992 | 13,924 | 7,916 | |||||||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
1,162 | 923 | 3,293 | 2,709 | |||||||||||||
|
Patent litigation and settlement costs
|
29 | 238 | 94 | 1,172 | |||||||||||||
|
Acquisition-related costs
|
244 | 259 | 244 | 259 | |||||||||||||
|
Restructuring and other
|
- | 305 | 234 | 709 | |||||||||||||
|
Patent litigation estimate
|
- | 3,011 | - | 3,011 | |||||||||||||
|
Non-GAAP operating income
|
$ | 3,458 | $ | 2,812 | $ | 7,908 | $ | 5,746 | |||||||||
|
Non-GAAP Operating income (loss), as a %
|
|||||||||||||||||
|
of total revenues
|
8 | % | 9 | % | 6 | % | 9 | % | |||||||||
|
Non-GAAP net income (loss) reconciliation:
|
|||||||||||||||||
|
Net loss
|
$ | (2,243 | ) | $ | (5,235 | ) | $ | (11,010 | ) | $ | (7,452 | ) | |||||
|
Net loss, as a % of total
|
|||||||||||||||||
|
revenues
|
-5 | % | -15 | % | -9 | % | -8 | % | |||||||||
|
Add back:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
4,015 | 2,992 | 13,924 | 7,916 | |||||||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
1,162 | 923 | 3,293 | 2,709 | |||||||||||||
|
Patent litigation and settlement costs
|
29 | 238 | 94 | 1,172 | |||||||||||||
|
Acquisition-related costs
|
244 | 278 | 244 | 278 | |||||||||||||
|
Restructuring and other
|
- | 305 | 234 | 709 | |||||||||||||
|
Patent litigation estimate
|
- | 3,011 | - | 3,011 | |||||||||||||
|
Interest expense on convertible notes
|
- | - | - | 277 | |||||||||||||
|
Amortization of convertible note issuance cost
|
- | - | - | 58 | |||||||||||||
|
Sale of domain names and trademarks
|
- | - | (3,862 | ) | |||||||||||||
|
Non-GAAP net income
|
$ | 3,207 | $ | 2,512 | $ | 6,779 | $ | 4,816 | |||||||||
|
Non-GAAP Net income (loss), as a %
|
|||||||||||||||||
|
of total revenues
|
7 | % | 7 | % | 5 | % | 5 | % | |||||||||
|
Non-GAAP net income (loss) per share reconciliation:
|
|||||||||||||||||
|
Net loss per basic and diluted share
|
$ | (0.04 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.16 | ) | |||||
|
Add back:
|
|||||||||||||||||
|
Non-cash stock-based compensation
|
0.07 | 0.06 | 0.25 | 0.17 | |||||||||||||
|
Non-cash amortization of acquired
|
|||||||||||||||||
|
intangible assets
|
0.02 | 0.02 | 0.06 | 0.06 | |||||||||||||
|
Patent litigation and settlement costs
|
- | - | - | 0.02 | |||||||||||||
|
Acquisition-related costs
|
0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||
|
Restructuring and other
|
- | 0.01 | - | 0.02 | |||||||||||||
|
Patent litigation estimate
|
- | 0.06 | - | 0.06 | |||||||||||||
|
Interest expense on convertible notes
|
- | - | - | 0.01 | |||||||||||||
|
Amorization of convertible note issuance cost
|
- | - | - | (0.01 | ) | ||||||||||||
|
Sale of domain names and trademarks
|
- | - | - | (0.08 | ) | ||||||||||||
|
Non-GAAP net income per diluted share
|
$ | 0.06 | $ | 0.05 | $ | 0.12 | $ | 0.10 | |||||||||
|
Basic and fully diluted shares reconciliation:
|
|||||||||||||||||
|
GAAP Basic shares
|
56,104 | 48,564 | 54,156 | 47,061 | |||||||||||||
|
Add back:
|
|||||||||||||||||
|
Weighted average effect of dilutive securities
|
1,386 | 1,472 | 1,551 | 2,739 | |||||||||||||
|
Diluted shares
|
57,490 | 50,036 | 55,707 | 49,800 | |||||||||||||
CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
(unaudited)
(In thousands, except per share data)
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the Company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
|
Three Months Ended
|
|||
|
December 31, 2015
|
|||
|
GAAP
|
Non-GAAP
|
||
|
Total revenue
|
$46,000 - $47,000
|
$46,000 - $47,000
|
|
|
Operating income (loss) (a)
|
($1,500) - ($3,500)
|
$4,100 - $5,600
|
|
|
Net income (loss) per diluted share (c)
|
($0.03) - ($0.07)
|
$0.06 - $0.09
|
|
|
Twelve Months Ended
|
|||
|
December 31, 2015
|
|||
|
GAAP
|
Non-GAAP
|
||
|
Total revenue
|
$172,300 - $173,300 |
|
$172,300 - $173,300
|
|
Operating income (loss) (b)
|
($11,400) - ($13,400)
|
$12,000 - $13,500
|
|
|
Net income (loss) per diluted share (c)
|
($0.23) - ($0.27)
|
$0.18 - $0.21
|
|
|
(a)
|
Estimated non-GAAP amounts above for the three months ending December 31, 2015 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $1.2 - $1.5 million, estimated stock-based compensation expense of approximately $4.0 – $4.5 million, and patent litigation costs and restructuring and other expenses of approximately $0.5 – $0.8 million.
|
|
(b)
|
Estimated non-GAAP amounts above for the twelve months ending December 31, 2015 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $4.5 - $4.8 million, estimated stock-based compensation expense of approximately $18.0 - $18.5 million, and patent litigation costs, restructuring and other expenses of approximately $1.1 - $1.4 million.
|
|
(c)
|
Non-GAAP fully diluted share count is between 56.8 million and 58.3 million. GAAP share count is between 54.8 million and 56.3 million.
|